My co-founder has a meeting this week with a group named Liberty Capital (http://www.liberty-capitalfunding.com/). They offer money with future invoices as collateral.
Right now, my team needs cash. We're pretty savvy (thanks to the HN contingent!), and still early enough where we need cash to get ramen profitable. My first thought on this was, "SCAM" -- but is using future invoices as collateral just a horrible idea? After all, you usually give up equity, which is trading future money for money now; not really that different than what Liberty claims to do.
Does this scream SCAM to you guys too? What are your thoughts on it?
Right now, my team needs cash. We're pretty savvy (thanks to the HN contingent!), and still early enough where we need cash to get ramen profitable. My first thought on this was, "SCAM" -- but is using future invoices as collateral just a horrible idea? After all, you usually give up equity, which is trading future money for money now; not really that different than what Liberty claims to do.
Does this scream SCAM to you guys too? What are your thoughts on it?